In a market and economic landscape that's constantly changing, a clear perspective is a competitive advantage. Finance leaders in startups and small to medium-sized businesses (SMBs) must maintain granular knowledge about company cash flow and expected performance to keep the business and its goals moving forward.
The right metrics can help decision-makers better understand the company's financial situation and current performance and make the best decisions. Revenue run rate is a powerful metric for high-level insight into future potential. It provides valuable insights into a company's annual recurring revenue and expected financial performance by projecting these figures based on current performance trends.
Let's break down everything you need to know about revenue run rate and explore its importance as a growth metric.